May 29 2008
Gas Prices and Outer Banks Vacations
How will gas prices affect the Outer Banks in 2008?
A very serious concern of many Outer Banks residents and business owners has been the rising price of gasoline. With the majority of the Outer Banks businesses reliant on tourism, a major move in gasoline prices are always a concern.
With Memorial Day just passing, it seems the rise in fuel prices will have very little negative effect. If Memorial Day weekend was any indicator for the entire summer, it actually appears as if the 2008 season will reflect the strong 2007 season.
Several local business owners and managers I spoke with early in the week reported having strong Memorial Day sales. A couple even hinted that this was one of the strongest Memorial Day weekends in recent years. Some rumors floated about some of the businesses having higher sales than any day of last summer.
My personal thought is that most Americans are looking at vacation destinations that are closer to home. The declining value of the US dollar abroad will force many Americans to vacation in the states. Besides the decline in purchasing power of the dollar abroad, airline prices have increased in response to the increase in fuel costs. Both of these factors normally lead to increase tourism for US destinations. How this all affects us here in the Outer Banks remains to be seen.
Follow-Up:
After spending the last couple days talking to vacationers, it seems as if the gas prices are not affecting their decisions to visit the Outer Banks. I have to believe that without a dramatic price increase, tourism along the Outer Banks will remain strong.
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